MBNA Canada priced its second public asset-backed transaction last week, and it went well, sources say, with bids on more than two-thirds of the issuance soon after books opened last Tuesday.

The C$295.75 million transaction was placed via the Gloucester Credit Card Trust, and was backed by MBNA Canada's credit card receivables.

The three-year triple-A rated tranche priced at a spread of 50 basis points over the three-year Government of Canada 7.5% bond, in line with the wide end of guidance. The three-year triple-B rated tranche priced at 245 basis points over the same benchmark.

TD Securities led the transaction, with BMO Nesbitt, CIBC World Markets, Merrill Lynch Canada and Royal Bank of Canada-Dominion Securities serving as co-managers.

"We think the Gloucester Credit Card Trust transaction went well," said Vernon Wright, vice chairman of MBNA. "It also helped fill in the gap in trying to create a yield curve in our paper."

MBNA's first public transaction was a five-year C$250 million transaction, and priced in June.

Elsewhere in the Canadian market, Canadian Home Income Plan updated its filing to issue up to C$500 million in ABS backed by reverse mortgages through its CHIP Master Term Trust. CHIP is currently working on a $15 million transaction in seven-year subordinate notes, with Scotia Capital serving as lead manager.

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